i observe on partnership deed that partners of the firm mutually agrees to pay interest on capital @12% from 1.4.05.
now if some one of the partner withdraw more than its capital than is he is liable to pay interest on drawings.

Whether the depreciation can be charged from the Invoice date also? Whatif the Company does so?

is general reserve a liability for the company?

Sir,

Please slove this query.


Sumit Electronic is considering a proposal to replace one of its machine. In this regard, the following information is available.

The existing machine was brought 3 years ago for Rs. 10 yrs. Lacs. It was depreciated at 25 percent p.a. on reducing balance basis. It has remaining useful life of 5 years, but its annual maintenance cost is expected to increase by Rs. 50000.00 from the sixth year of its installation. Its present realisable value is 6 lac. The company has several machines, having 25 percent depreciation. The new machine cost Rs. 15 lac and is subject to the same rate of depreciation. On the sale after 5 yrs, it is expected to net Rs. 6 lacs. With the new machine, the annual operating cost (excluding deprecation) are expected to decrease by Rs. 1 Lac. In addition, the new machine would increase productivity on account of which net revenues would increase by 1 – 5 lac. annually.

The tax rate applicable to the firm is 35% and the cost of capital 10%. Is the proposal financially viable? Advise on the basis of NPV of the proposal.

Mr Anuj sent 2000 units cosying Rs 1800 each to Mr Mahipalthe goods were to be sold as to yeild a agross profit of 20% on sales. Mahipal sold 1200 units @ 2050per unit on credit and 650 units @ 2300 per unit on cash. Mr Mahipal is entitled toa commission Rs 300 per unit. The amount of commission will be
(A) 555000 (B) 570000
(C) 590000 (D) 610000
please describe in breif
answer:- 555000

Dear Friends,
We have incurred the following Expenditures:-
1. Stamp duty for Share issue
2. Exp to increase Authorised Capital
3. New company incorporation fees paid to ROC
Whether they are Preliminary Exp.? How to treat the same in Accounts & Income Tax?

Naveen of nagpur sends out 1000 boxes costing 100000 to deepak of delhi at cost+20%. Consignor expenses were friegth 6000, insurance 2000, consinee exp were lauding and unlauding charges 10000, salesman salary 6000, commition 2% on gross sale. what will be the amount of profit if 3/4 goods sold by consginee at Rs 100000.
(A) 5500 (B) 6500
(C) 7500 (D) 3500
answer:- (D) 3500
please describe

Sundry debtors on 31 march 2005 are Rs 105000. Further bad debts are Rs 5000. Sales return recorded in the books 10000. Old provison for bad debts is Rs 4000. Orovison for doubtfuk debts is to be made on debtors @3%. what will be the amount of bad debts charged in profit and loss a/c considering provison fpor bad debts.
(A) 27000 (B) 10000
(C) 12700 (D) 6000

Why we don't show subsidiary companies PROPOSED DIVIDEND in Consolidated Balance Sheet?
as we add whole amount of PROPOSED DIVIDEND in the Association of Profits of subsidiary companies

Are prior period expenses are disallowed in current year?
If yes, why, because if we had not accrued them then in last year also we had not taken under exp, so if in current year these are disallowed then is it total loss for co. means in neither of years it is allowed.